Hi there,

Could someone please help me solve the following;

Bovine Company, a wholesale distributor of umbrellas, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales $ 2,170,000 Variable 860,440 expenses Contribution 1,309,560 margin Fixed expenses 1,339,000 Operating loss $ (29,440) In an effort to isolate the problem, the president has asked for an income statement segmented by geographic market. Accordingly, the Accounting Department has developed the following: Geographic Market South Central North Sales $ 617,000 $ 816,000 $737,000 Variable expenses as a 52% 30% 40% percentage of sales Traceable fixed expenses $359,000 $547,000 $ 317,000 Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president. Geographic Market Total South Central North Company $ 0 0 $ o $ o $ 0 $ $ 0 2-a. The company's sales manager believes that sales in the Central geographic market could be increased by 15% if monthly advertising is increased by $42,000. Calculate the incremental net operating income. Incremental net operating income 2-b. Would you recommend the increased advertising? O No O Yes